The government has published the 2025 to 2026 apprenticeship funding rules. These updates will apply to all new apprenticeships starting on or after 1 August 2025.
The aim is to make apprenticeships more flexible, simpler to manage, and better aligned with employer needs. But as with every rule change, employers must understand how these updates affect recruitment, training delivery, and compliance.
Here are the key changes that matter to you as an employer:
1. Minimum Duration Reduced to 8 Months
From August 2025, the minimum apprenticeship duration will reduce from 12 months to 8 months in certain cases.
This applies where:
- The sector allows shorter routes.
- Learners bring significant recognition of prior learning (RPL).
What this means for you: Faster progression into competent roles, but you must evidence that apprentices still meet all training and assessment requirements.
2. Off-the-Job Training (OTJT) Simplified
The OTJT rules have changed significantly:
- Each apprenticeship standard now has a published minimum OTJT figure (no more individual calculations).
- Delivery is not linked to programme length – you can spread OTJT flexibly across the apprenticeship.
- Part-time apprentices no longer automatically require extended durations.
Risk to employers: If apprentices don’t meet the published OTJT minimum (adjusted for RPL), government funds can be recovered.
3. English and Maths Clarifications
For apprentices aged 19+, the employer must decide whether they will study standalone English and/or maths.
- If included, active learning must be evidenced in line with the training plan.
- If not included, apprentices don’t need to complete diagnostic assessments or provide prior attainment evidence.
4. New Apprenticeship Assessment Principles
From April 2025, assessment plans are being rewritten to reflect new government principles. Key points:
- Assessments can take place on-programme, not just at the end.
- Training providers may deliver some elements, though EPAOs remain responsible for validity.
- Duplication will be reduced, making the process more proportionate.
For employers, this means apprentices can complete more smoothly and with less disruption to the workplace.
5. Foundation Apprenticeships
A new Foundation Apprenticeship route has been introduced, aimed at young people entering the workforce.
- Shorter, more accessible programmes.
- Designed to give employers a pipeline of early talent in critical sectors.
6. Additional Payments and Incentives
- Payments for employers of 16–18-year-olds are confirmed.
- Care leaver bursaries remain, now clarified as tax-free and not treated as income for Universal Credit.
- Employers will also receive final payments for shorter-duration and foundation apprenticeships.
7. Other Notable Updates
- Subcontracting rules tightened – small providers under the £100k threshold face restrictions.
- Residency eligibility clarified – asylum seekers are not eligible, but EU nationals with pre-settled status are.
- Prisoner apprenticeships can now complete end-point assessment prior to release.
How Medipro Supports Employers
These rule changes may feel complex, but we’re here to make them manageable:
- Funding guidance – We’ll help you understand how the new rules affect your levy or co-investment contributions.
- Compliance support – Our systems (Aptem CRM) track OTJT and training delivery in real time, ensuring you meet the new minimums.
- Tailored advice – Whether you’re planning shorter programmes or foundation apprenticeships, we’ll work with you to design the right approach.
- Ongoing updates – Our team keeps you ahead of government policy shifts, so you stay compliant without the stress.
Final Word
The 2025 apprenticeship funding rules bring more flexibility and clarity, but also more responsibility on employers to get things right.
At Medipro, we partner with you to ensure apprenticeships deliver both skills for your workforce and full compliance with the latest funding requirements.
If you’d like tailored guidance for your organisation, get in touch with our apprenticeship team today. To view the full funding rules, follow this LINK.